How Technology Changed the Billion-Dollar Ad Game

How Technology Changed the Billion-Dollar Ad Game

Daniel Burrus 29/11/2018 7
Advertising Advertising

The advertising industry has had a long and successful history. It has been a very big business, especially for brands like Procter & Gamble, which topped AdAge.com’s list of the world’s five largest advertisers with $10.5 billion in advertising spending.

For decades, the personal care company kept its products front and center in the minds of consumers – on TV, in print and eventually online. The formula was simple: P&G would spend a huge amount on advertising and loyal customers would respond by buying its products.

That is no longer the case. Technology has changed the ad game for P&G – and not in a good way.

Brief Timeline of Advertising Game-Changers

So if your company is like P&G, what should you do? Start with a fresh look at how much technology and advertising have changed over the last 30 years.

As you look at this timeline, pay attention to how technology worked for – or against – advertisers throughout recent history. Then, use my Hard Trends Methodology to predict what’s next.

  • 1990s – Hundreds of cable channels and the Internet launched, and advertisers jumped to buy space wherever their audiences would be.
  • Early 2000s – TiVo was one of the first disruptors to these seemingly endless advertising avenues. For the first time, consumers had power over when they got their content and began to skip the ads.
  • 2001 – Next came iPods, which could play downloaded media while consumers were on the go.
  • 2004 – Amazon.com launched as a virtual bookstore and began laying the groundwork for online retailers
  • 2006 – Social media pioneer Facebook opened the News Feed, in which anybody – and any brand – could self-publish content. Facebook ads, for which advertisers once again had to “pay to play,” wouldn’t come until later.
  • 2007 – Netflix went from DVD to streaming and never looked back. Consumers could now also choose what to watch, whenever they wanted to.
  • Also in 2007 – Smartphones came on the scene, allowing consumers to carry all types of media in their hands. The ad industry had to go mobile – often in addition to going traditional. Though it wasn’t easy to navigate at first, by 2015 mobile ad spending would top $28 billion.
  • 2008 – Spotify started running on advertising dollars initially, but also offered premium, ad-free packages to consumers at nominal prices.
  • 2009 – In the late 2000s, YouTube began allowing pre-roll ads; advertisers were once again able to recapture a very captive audience.
  • 2012 – Facebook purchased Instagram. It would be five years before the $1 billion gamble would pay off, but in the meantime, real people became the faces of brands. The newest media-buying currency was the influence of the crafty, hip or carpool moms who had become spokespeople.
  • 2015 – Amazon.com hit a milestone as it accounted for at least half of all e-commerce growth. Many experts attributed sales success to the debut of the company’s one-click ordering.
  • 2018 and beyondNot only is data-driven advertising becoming more popular, it’s expected in today’s “show me you know me” consumer culture.

If you use my Hard Trends Methodology to look ahead to the future of advertising, you’ll be able to anticipate that the next decade will move even faster. Even more devices are likely to be developed, and they will ultimately be connected to each other as an integral part of our lives.

Now is the time to learn to anticipate the next wave of technology. Start with my book, The Anticipatory Organization, which is fittingly available with one-click ordering on Amazon.com right now.

AOBookCoverWebsite

Advertising Advertising

Share this article

Leave your comments

Post comment as a guest

0
terms and condition.
  • Candice Oliver

    When something is free, you're the product.

  • Alice Woods

    Instagram sells your photos all the time- that's how the "discover" feature works, it totally blends the line of adaptive advertising and recommendation algorithms

  • Paul Donnelly

    That was interesting but scary evolution. I'll have to be more careful.

  • Alex Corbin

    This is getting crazy...

  • Sarah Houston

    Good read

  • Josh Chamberlin

    Until the government decides to regulate the advertising industry, it's either live with it or do without.

  • Tim Smith

    Adblock everything! If you really support it, give it money.

Share this article

Daniel Burrus

Innovation Guru

Daniel Burrus is considered one of the world’s leading futurists on global trends and innovation. The New York Times has referred to him as one of the top three business gurus in the highest demand as a speaker. He is a strategic advisor to executives from Fortune 500 companies, helping them to accelerate innovation and results by develop game-changing strategies based on his proven methodologies for capitalizing on technology innovations and their future impact. His client list includes companies such as Microsoft, GE, American Express, Google, Deloitte, Procter & Gamble, Honda, and IBM. He is the author of seven books, including The New York Times and Wall Street Journal best-seller Flash Foresight, and his latest book The Anticipatory Organization. He is a featured writer with millions of monthly readers on the topics of innovation, change and the future and has appeared in Harvard Business Review, Wired, CNBC, and Huffington Post to name a few. He has been the featured subject of several PBS television specials and has appeared on programs such as CNN, Fox Business, and Bloomberg, and is quoted in a variety of publications, including The Wall Street Journal, Financial Times, Fortune, and Forbes. He has founded six businesses, four of which were national leaders in the United States in the first year. He is the CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients profit from technological, social and business forces that are converging to create enormous, untapped opportunities. In 1983 he became the first and only futurist to accurately identify the twenty technologies that would become the driving force of business and economic change for decades to come. He also linked exponential computing advances to economic value creation. His specialties are technology-driven trends, strategic innovation, strategic advising and planning, business keynote presentations.

   

Latest Articles

View all
  • Science
  • Technology
  • Companies
  • Environment
  • Global Economy
  • Finance
  • Politics
  • Society